Visa and First Data’s STAR Network announced an agreement on Wednesday to share Visa’s common EMV debit solution, which will help encourage the development of EMV solutions using a common application identifier.
STAR Network will use PIN and no CVM functionality on the common AID to facilitate various debit transaction types on its network, including PIN, PINless and signature verification methods.
EMV cards feature a chip that generates a one-time code for every transaction, making it difficult for fraudsters to counterfeit, thereby reducing the risk of fraud losses.
The AID will facilitate U.S.-originated debit transactions from networks that license the Visa common AID solution and are enabled on Visa cards.
“This agreement is a significant step to accelerate EMV adoption by addressing Regulation II compliance for debit EMV transactions,” First Data Financial Services President Barry McCarthy said. “First Data’s STAR Network is pleased to lead the effort by being one of the first debit networks to take this step and assist issuers, acquirers and merchants with equal access to a shared EMV chip card technology. Not only does it accelerate the migration to EMV adoption but also moves the industry a step closer to additional debit payment security.”
Visa debit issuers may now choose between competing network options for EMV chip debit cards.
“Visa’s priority is to facilitate the U.S. migration to EMV technology as efficiently and quickly as possible,” Elizabeth Buse, the global executive of solutions at Visa, said. “Under our approach, issuers and merchants will have a streamlined path to achieve the security benefits of EMV while minimizing disruption to legacy systems.”